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Glacier Inc. has no long-term debt. Its cost of equity is 13%, and its marginal tax rate is 0.34. The board of directors decided to

Glacier Inc. has no long-term debt. Its cost of equity is 13%, and its marginal tax rate is 0.34.

The board of directors decided to change its capital structure such that the debt/equity ratio becomes 1.1. The company can borrow at an interest rate of 10%.

a) What is the new WACC?

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